The Finnish Energu producer Fortum estimates approx. EUR 700 million one-time negative impact on net profit due to planned closure of OKG nuclear units 1 and 2 in Oscarshamn on the Ssedish East Cost. OKG AB’s Board of Directors has today decided to invite an Extraordinary shareholders’ meeting on 14 October 2015 in order to be able to make a decision on the closing of the units 1 and 2 in Oskarshamn nuclear power plant in Sweden. In OKG AB, E.ON is the majority owner and can decide on the closing of units. Approximately ten per cent of the Swedish electricity generation might disappear.

Will take Several Years

For unit 1 the decision would mean that the unit would be taken out of operation and transferred into service mode after the applied environmental permit estimated to be received during 2017 – 2019. The exact timing depends on the environmental permit process. For unit 2, which has been out of operation since June 2013 due to extensive safety modernization, the decision would mean that it would not be returned into operation. The closing process for the units is estimated to take several years. Fortum has evaluated the financial impact of the decision based on the currently available information from OKG AB. Fortum estimates that the decision will have a one-time negative impact of approximately EUR 700 million on its third quarter 2015 net profit.

Owns Half the Plant

Fortum owns approximately 45.5% of the shares in OKG AB through its Swedish subsidiaries. Karlstad municipality in Sweden is a shareholder in one of these subsidiaries, which gives it an indirect ownership of approximately 2.1% of the OKG shares. Excluding Karlstad municipality’s interest, Fortum’s ownership is 43.4%, which reflects the share of electricity produced that Fortum can sell further to the market. When all units were operating, Oskarshamn’s three nuclear power units provided approximately 10% of the Swedish electricity generation. The total production capacity of the units is 2,511 megawatts (MW) of which Fortum’s share is 1,090
MW. The biggest and newest unit 3, with capacity of 1,400 MW, will continue its operation (Fortum’s share 608 MW). Oskarhamn 1 was commissioned in 1972, Oskarshamn 2 in 1974 and Oskarshamn 3 in 1985, says Helena Aatinen Senior Vice President, Corporate Communicationsin Fortum Corporation.